In a large bowl, mix warm milk, active dry yeast, and a pinch of sugar. Let sit until foamy for about 5-10 minutes.

Stir in the remaining granulated sugar, egg, vanilla extract, salt, and melted butter. Mix until smooth.

Gradually add in the flour, mixing to form a soft dough. Knead for 5-7 minutes until elastic.

Transfer the dough to a greased bowl, cover with a cloth, and let rise until doubled in size, 1-1.5 hours.

Punch down the dough and roll it out to 1/4 inch thick. Cut into 2-3 inch squares.

Heat vegetable oil to 350°F. Fry the beignets in batches for 1-2 minutes per side until golden brown.

Drain on paper towels and dust with powdered sugar while warm.